Budget 2013

THIRTY thousand seniors will be able to sell up and move into more manageable residences while their profits are shielded from means testing in a special account.

Under a $112.4 million, three-year trial from July next year, they will be able to sell their home – which must have been owned for 25 years – buy a smaller home and sink 80 per cent of the remaining proceeds – up to $200,000 – into a special bank account.

The money, plus interest, will be exempt from the age pension means test for up to 10 years as long as no withdrawals are made, except to be gifted.

People moving into granny flats or retirement villages can also benefit, but not those moving to residential aged care.